ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Apollo Hospitals share price falls 3% after poor Q1 results – what should investors know?
  • Instagram users ALERT! Are you being tracked by Meta-owned platform?
  • Syrma SGS Technology IPO subscription opens today: Check price band, allotment and listing date
  • BMW M4 Competition Coupe 50 Jahre M Edition launched in India: Check price and specifications
  • Atal Pension Yojana Income Tax benefit for salaried employees after new rule: All you need to know
Read in App
Business News » Companies News

Uber IPO: Company prices initial offerings conservatively to raise $8.1 bn

Uber Technologies Inc priced its initial public offering on Thursday at the low end of its targeted range, raising $8.1 billion, two people familiar with the matter said.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Uber IPO: Company prices initial offerings conservatively to raise $8.1 bn
Uber`s IPO comes against a backdrop of turbulent financial markets and the plunging share price of its U.S. rival Lyft Inc. Photo: Reuters

 

Summary: 

Picture caption: 

Uber Technologies Inc priced its initial public offering on Thursday at the low end of its targeted range, raising $8.1 billion, two people familiar with the matter said, adopting a risk-averse stance toward the most high-profile U.S. listing since Facebook Inc seven years ago.
 
Uber`s IPO comes against a backdrop of turbulent financial markets and the plunging share price of its U.S. rival Lyft Inc. Uber is eager to avoid a repeat of what happened to Lyft’s stock, which priced strongly in the company`s late-March IPO, opened trading strongly, but has been falling mostly since. Lyft`s stock slumped nearly 11 percent on Wednesday to a record closing low of $52.91, well below the $72 per share IPO price, after the ride-hailing company reported a $1.1 billion quarterly loss. 

Uber, the world`s largest ride-hailing company, is aiming for a valuation of between $80.5 billion and $91.5 billion in the IPO. That is as much as one-third below what the startup`s insiders had hoped for last year, a sign of its more cautious approach in the wake of Lyft`s struggles. 

Uber priced its IPO at $45 per share, the people familiar with the matter said on Thursday, toward the bottom end of its $44-$50 per share price range. The IPO values Uber at around $82.4 billion.

A company spokesman declined to comment. Uber is due to price the IPO after U.S. markets close. Some still consider the stock overpriced. 

"Uber is basically Lyft 2.0. Good model, growing sales. But, yet again, here comes California math once more. It is still losing a ton of money," said Brian Hamilton, a tech entrepreneur and founder of data firm Sageworks. "If you buy, you are buying a bull market, not a company," he added.
 
In meetings with potential investors the past two weeks, Uber`s chief executive, Dara Khosrowshahi, argued that Uber`s future was not as a ride-hailing company, but as a wide technology platform shaping logistics and transportation.

The company is hoping this pitch, coupled with any fear of missing out what is expected to be the biggest IPO of 2019, will support demand. The IPO pricing is a balancing act for Uber`s team of underwriting banks, led by Morgan Stanley, Goldman Sachs & Co and Bank of America Merrill Lynch, to negotiate a good price while leaving some upside to ensure the stock trades up on its market debut.

Uber is aiming to sell 180 million shares in the offering to raise up to $9 billion, with a further 27 million potentially sold by existing investors for as much as $1.35 billion.
Uber lost $3.03 billion in 2018 from operations, and reported a net loss attributable to the company for the first quarter of 2019 of around $1 billion on revenues of roughly $3 billion.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
UberFacebookLyft
Written By: Reuters
Updated: Fri, May 10, 2019
07:06 am
New Delhi, Reuters
RELATED NEWS
After Uber, another American firm sells its stake in Zomato After Uber, another American firm sells its stake in Zomato
Uber lost $707 million in Zomato investment this year; food delivery company reacts Uber lost $707 million in Zomato investment this year; food delivery company reacts
WA2R: Uber's 'WhatsApp to Ride' feature coming soon in Delhi-NCR - All you need to know WA2R: Uber's 'WhatsApp to Ride' feature coming soon in Delhi-NCR - All you need to know
Uber sells 7.8% stake in Zomato for this amount? Uber sells 7.8% stake in Zomato for this amount?
Zomato share price tanks nearly 7% amid reports of Uber stake sale Zomato share price tanks nearly 7% amid reports of Uber stake sale

LATEST NEWS

Noida Twin Tower demolition date to be extended again?

Happy Raksha Bandhan 2022 - Download, send WhatsApp status, stickers, GIFs and more

Cryptocurrency News: Money laundering of around Rs 10 billion? 10 crypto exchanges under ED lens - Details

HZL stake sale: Six merchant bankers in fray to buy for government's share

Full Moon Super Moon August 2022: When and where to watch Sturgeon Supermoon - Timing of last Supermoon of 2022

Xiaomi Mix Fold 2 launched - Check price, specifications, India availability and more

SpiceJet launches taxi service with zero cancellation fee and zero wait time in THESE cities – All details here

Flag hoisting time on 15 August 2022: Independence Day celebrations guidelines - All details | Har Ghar Tiranga campaign

Anil Singhvi's strategy on Aug 12: Support zone on Nifty is 17525-17575, Bank Nifty is 38500-38650

7th Pay Commission Central government employees latest news: DA formula changed – know how it will impact your salary

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV